Nakheel ups stake in Australian firm

[sajid]

Dubai: Real estate developer Nakheel, which is behind Dubai's huge waterfront projects such as the Palm Islands and The World, said on Thursday it has doubled its stake to 12.5 per cent in Australian real estate group Mirvac.

The new investment follows Nakheel's acquisition of 6.51 per cent interest in Mirvac in December, which marked the beginning of a partnership between the two groups.

Nakheel, which has $60 billion worth of development projects in its portfolio, said it is looking to develop real estate with Mirvac, which is listed on the ASX and has more than $26.3 billion of real estate activities.

"Nakheel's increased economic investment represents a strategic holding and a long-term partnership with Mirvac. As Nakheel looks to broaden its international remit," said Chris O'Donnell, Nakheel CEO.

Projects

He said the company has identified many opportunities in Australia and overseas to work with Mirvac, including a bid with Leighton Properties for Barangaroo in East Darling Harbour.

Mirvac said it sold A$300 million worth of shares to Nakheel at A$5.20 each, representing a 7.4 per cent premium to Wednesday's closing share price.

The company said the capital raised will boost its balance sheet with debt to total assets declining from approximately 35 per cent as at the end of 2007, to approximately 30 per cent after the placement.

Following the placement, available liquidity via cash and committed bank facilities has increased to over $1.1 billion with only $138 million of debt maturing over 12 months, it said.

"This was an opportunity to strengthen our balance sheet with a strategic long-term investor that also offers joint venture capabilities," Mirvac's managing director Greg Paramor said.